1. The 3 D’s Dispute Default Debarment

2. The 3 D’s- Dispute,Default &Debarment

3. DISPUTE Late Delivery Refurbished Equipment Damage Shipment Incorrect invoicing Non-payment* Did not meet specification Unauthorized substitution Time of Delivery inappropriate

4. DISPUTE Review contract Notify vendor of dispute based on the contract Follow-up with formal Procurement Complaint to vendor and cc the Compliance Officer

5. DISPUTE When the Vendor have a Dispute with the BUYER!!!!!

6. Dispute w/ Buyer Terminate for Convenience Costs for the Vendor The contractor must submit any termination claim within 120 days after receipt of the notice of termination, or such longer period as the state for good cause may allow. This claim will be in a form and with certifications prescribed by the purchasing office that issued the purchase order. The claim will be reviewed and forwarded with appropriate recommendations to the requisitioning agency and/or the appropriate assistant attorney general for disposition in accordance with the Code of Virginia, § 2.2-514. Termination for convenience claims will be considered for only actual expenses incurred up to the time of termination.

7. DEFAULT If the dispute is resolved, then the complaint is closed. If the dispute is not resolved, then issue a “Cure Letter”. Remember a “Cure Letter” can be presented with a complaint.

8. DEFAULT If the “Cure” period comes and go without a resolution, then the next step is a formal default notice Proceed with Termination for Default (letter) Request Reprocurement Cost from vendor

9. DEFAULT SUSPENSION Suspension is a type of ineligibility based upon adequate evidence that a vendor has committed any of the grounds for debarment as listed in this manual under paragraph 7.20. In the event that an indictment against a vendor or its principles exists for any of the reasons listed in this manual, paragraphs 7.20 m., n., or o., the indictment shall constitute adequate evidence for suspension. The period of suspension shall not exceed one year unless requested by the Office of the Attorney General. The process for suspension will be governed by the same procedures used for debarment/ineligibility. 7.24 Vendor Manual

10. DEBARMENT

12. The TOP 3 Breach (including anticipatory breach) of contract with a state agency Any cause indicating that the individual or firm is not a responsible vendor Failure to pay re-procurement costs pursuant to a contract termination for default

13. WHO CAN DEBAR? 1.DPS DIRECTOR 2.VITA 3.VDOT ROAD AND BRIDGES 4.ABC 5.Local governments & Political Subdivision must establish own policy & procedure

14. DEBARMENT Agency can request debarment for vendors that defaulted on a contract Vendor has right to review file before debarment Vendor can Appeal of Ineligibility or Disqualification Determination or Debarment (Code of Virginia, § 2.2-4357) Make sure that you keep good records

15. REINSTATEMENT A debarred individual or firm can apply for reinstatement at any time in writing to the debarring official citing actions taken to remedy the reason for debarment or prevent recurrence of the situation that caused the debarment action to be taken and otherwise indicating that lifting or suspension of the debarment would be in the best interest of the Commonwealth. Examples of actions that the Director may take into consideration include, but are not limited to: a.Repayment by a debarred contractor of additional costs resulting from a default action for which the contractor had previously failed to reimburse the Commonwealth and was debarred. b.Disassociation with individuals or firms that were responsible for the debarment.

16. DIVISION OF PURCHASES & SUPPLY CONTRACT COMPLIANCE Valerie S. Deloach, CPPO,CPPB,VCO 804-225-4045 Valerie.deloach@dgs.virginia.gov